Is WisdomTree International Equity ETF (DWM) a Strong ETF Right Now?

Launched on 06/16/2006, the WisdomTree International Equity ETF (DWM) is a smart beta exchange traded fund offering broad exposure to the Broad Developed World ETFs category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexThe fund is managed by Wisdomtree, and has been able to amass over $599.65 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the WisdomTree International Equity Index before fees and expenses.The WisdomTree International Equity Index is a fundamentally weighted Index that measures the performance of dividend-paying companies in the industrialized world, excluding Canada and the United States.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.DWM's 12-month trailing dividend yield is 3.02%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.When you look at individual holdings, Us Dollaraccounts for about 84.38% of the fund's total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Hsbc Holdings Plc (HSBA).DWM's top 10 holdings account for about 106.21% of its total assets under management.Performance and RiskSo far this year, DWM has gained about 28.41%, and was up about 18.94% in the last one year (as of 09/24/2025). During this past 52-week period, the fund has traded between $52.06 and $66.96.DWM has a beta of 0.71 and standard deviation of 14.54% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1427 holdings, it effectively diversifies company-specific risk .AlternativesWisdomTree International Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.iShares MSCI EAFE ETF (EFA) tracks MSCI EAFE Index and the iShares Core MSCI EAFE ETF (IEFA) tracks MSCI EAFE Investable Market Index. iShares MSCI EAFE ETF has $67.15 billion in assets, iShares Core MSCI EAFE ETF has $154.85 billion. EFA has an expense ratio of 0.32% and IEFA changes 0.07%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFsBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WisdomTree International Equity ETF (DWM): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks